MMA urges Veterans Committee to support bills to streamline veterans benefits

The Honorable Joseph W. McGonagle Jr., House Chair
The Honorable John C. Velis, Senate Chair
Joint Committee on Veterans and Federal Affairs
State House, Boston

Delivered electronically

Dear Chair McGonagle, Chair Velis, and Distinguished Members of the Committee,

On behalf of cities and towns across the Commonwealth, the MMA wishes to express our appreciation for the opportunity to offer testimony in strong support of H. 3859, An Act to streamline veterans benefits.

In Massachusetts, unlike any other state, the majority of guidance and support for veterans happens at the local level and is provided to any eligible veteran living in the community. Local officials are deeply committed to providing excellent services for veterans and we are supportive of legislation that improves this system while mitigating the direct financial impact to cities and towns.

Currently, municipalities pay 100% of the cost of Chapter 115 benefits to veterans, and are later reimbursed by the state at approximately 75%. The reimbursement is often one year behind and paid out on a quarterly basis. This system leaves many communities scrambling when unexpected payments arise, presenting a serious cash flow challenge, particularly for smaller communities.

H. 3859 would keep the administration of benefits (the intake) within the role of the local or district Veteran’s Service Officer (VSO), but shift the direct payment of those benefits to the Commonwealth. To be clear, the bill would make no changes to the payment award of benefits under Chapter 115. The local VSO would still be responsible for determining the veteran’s need for benefits and then issuing a payment request to the Commonwealth. This would ensure the important services provided by VSOs continue, while removing municipalities as the financial intermediary.

Based on Division of Local Services (DLS) FY2026 Cherry Sheet estimates, the state will reimburse municipalities for approximately $38.8 million in FY2026. The change provided in H. 3859, with the state paying the entire value of Chapter 115 benefits, is estimated to cost an additional $9.7 million to the Commonwealth. This cost is currently borne by municipalities, who also must bear additional costs associated with preparing and rectifying the payments, including preparing warrants, accounting, and certification.

Streamlining the state’s system for financing benefits paid to veterans in this way is consistent with sound direct-payment practices adopted by other state agencies. A single state appropriation for payment of benefits directly to veterans would also simplify the financing and administration of this program with the Executive Office of Veterans’ Services. We strongly urge the Committee to provide H. 3859 with a favorable report.

The MMA is also supportive of H. 3830 and S. 2456, An Act providing for timely reimbursement of cities and towns for veterans’ benefits, which would mitigate the financial burden for communities by requiring local reimbursements be made no later than six months after the date on which such expenditures are certified by the Secretary. While this does not stop local budgets from being dependent on state reimbursement, it does create necessary predictability as a first step.

Thanks to your leadership, Massachusetts is a leader when it comes to services for veterans. Passage of these bills would improve the system by mitigating the financial impact on municipalities and allowing them to focus exclusively on ensuring the best possible care for our veterans.

If you have any questions, please do not hesitate to have your office contact me, MMA Senior Executive and Legislative Director Dave Koffman, or MMA Legislative Analyst Ali DiMatteo, at any time.

Thank you very much for your consideration and support of local government.

Sincerely,

Adam Chapdelaine
MMA Executive Director and CEO